MCX Crude Oil under long liquidation
MCX Natural Gas may move in a range of 289.3-314.5
MCX Copper may trade between 419.9-432.7 levels
MCX Zinc likely to move in a range of 174.5-178.5
MCX Aluminium likely to move in a range of 134.5-137.9
Technically market is getting support at 753.8 and below same could see a test of 750.5 level, And resistance is now likely to be seen at 763, a move above could see prices testing 768.9.
Nickel on MCX settled down 1.14% at 757.10 as the US dollar gained. Nickel prices hitting multi-month lows as demand worries escalated on Chinese steel price weakness and after hopes of a trade truce with China seemed to have been quashed by United States President Donald Trump.
Steel rebar prices in China, the world’s top metals consumer eased further after touching their lowest since June earlier this week on faltering demand and near-record supply. Zinc is used to stimulate carbon steel while nickel is widely used in stainless steel making.
Last night the US dollar rose to the highest in two weeks after Federal Reserve vice chairman Richard Clarida said that the US central bank’s interest-rate policy should be aimed at sustaining economic expansion and that gradual interest-rate hikes are the best way forward.
Clarida also stressed the importance of monitoring new economic data as monetary policy is getting close to a neutral stance. Profits of China’s industrial enterprises above a designated size grew at an annualised rate of 3.6% in October, down from September’s 4.1%, according to NBS.
The profit growth cooled for a sixth straight month in October as factory prices and the pace of sales increases softened amid uncertainties caused by China-US trade war.
The slowdown was largely due to cooling factory-gate inflation and a high base, NBS official He Ping said in a statement.
Now a day ahead the US will release PCE price index, its GDP for the third quarter, October’s wholesale Inventories, and weekly crude oil Inventory data from the EIA. Germany will release Gfk’s consumer confidence index for December today.
Trading Ideas:
–Nickel trading range for the day is 750.5-768.9.
–Nickel dropped amid stronger US dollar on expectations of further interest rate hikes limited the increase ahead of this week’s G-20 summit in Argentina.
–Nickel inventories in the Shanghai bonded areas barely changed from a week earlier at 29,500 mt as of now, data showed.
–US President Trump, who is due to meet Chinese President Xi Jinping said that if negotiations were unsuccessful, he would also impose tariffs on the rest of Chinese imports.
Courtesy: Kedia Commodities
Source: Commodityonline.com
